JPMorgan: Trade War Could Trigger 60% Recession Chance

New York - JPMorgan Chase has significantly increased its prediction for a potential global recession, citing escalating trade tensions as the primary driver. The investment bank now estimates a 60% chance of a recession if the current trade war continues unabated. This assessment follows a sharp drop in stock prices on Thursday, directly linked to President Trump's announcement of new reciprocal tariffs.

Analysts at JPMorgan point to several factors contributing to the increased recession risk. These include reduced global trade volume, disrupted supply chains, and increased uncertainty for businesses, leading to decreased investment. The bank also notes that consumer confidence could be negatively impacted if prices rise due to the tariffs.

The situation is being closely monitored by economists and policymakers worldwide. The potential for a global recession raises concerns about job losses, decreased economic growth, and overall financial instability. While some remain optimistic that a resolution can be reached, JPMorgan's revised forecast underscores the serious economic consequences of the ongoing trade dispute.